The Importance of Employee Benefit Plans

A well structured employee benefit plan can help attract and retain productive employees that contribute to the bottom line of your business. Being aware of the tremendous impacts we all know is important. The absence of a valued employee due to health and stress related issues is costly, time-consuming and can be challenging to deal with from an HR perspective. In 2011, a Statistics Canada study found that businesses lost 105 million workdays due to employee illness and personal reasons, an average of about 9.3 workdays lost per employee.

According to a 2012 Conference Board of Canada study, these absences cost the economy an astounding $16.6 billion. When the costs associated with those absences are double and sometimes triple the cost of drug claims, we know we have a bigger problem than first imagined. Employees suffering long-term illnesses with no definitive diagnosis is a major and costly problem in the Canadian work place. Like most things in life, preventive maintenance can help avoid major problems. A well structured employee benefit and wellness program can help employees take care of themselves, remain healthy and stay productive.

It’s essential employers understand that investing in each employee’s health and well-being is not only a meaningful gesture, it’s good for business. This is why many leading employers now offer employee benefits that provide in-depth expert medical reviews, customized health coaching, and much more. Employee benefits plans can ensure your employees are getting the right diagnosis and treatment plan in the early stages. This will maximize productivity and improve morale in your company.

When compared to employees obtaining coverage on an individual basis, employee benefit plans are far more cost-effective. Through a group plan your employees will obtain enhanced dental, extended medical, prescription drug and access to disability coverage with no medical testing and at a discounted rate. The leverage of buying your coverage as group has its advantages. It is standard practice that private sector employers share the cost of the monthly premiums with their employees

There are a variety of options when it comes to constructing a plan that works well for your company. The nature of your business, your employee demographics and the type of budget you have available will all be considered when selecting the type of plan that works best for you.

Having employers and employees work together can form a powerful team against medical uncertainty and the millions of lost workdays that result from incorrectly diagnosed or improperly treated conditions.